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- Skechers designs and markets Skechers-branded contemporary footwear for men, women and children under several unique lines. Skechers operate 235 retail stores and 40 international stores. Core consumers are style-conscious 12 to 24 year-old men and women attracted to our youthful brand image and fashion- forward designs. Skechers best-selling and core styles are also developed for children with colors and materials that reflect a playful image appropriate for this demographic,The Hoops Ideology Report Ideology. Brand recognition is an important element for success in the footwear business. Skechers basically designs shoes and outsource all their manufacturing to china using third party vendors

Recently the stock price tanked from $44 to $20.57 as of yesterday in the last six months. Its market cap is 1.0B and Enterprise value of $731MM,Jordan 5s. It recently fell pretty hard due to its inventory problems and market believes that its recent UP line could be fad,Make money on short term skepticism - Skechers de,but this has nothin. There are even couple of lawsuits that their advertising is false. Recently Nike did not even design shape ups thinking it is fad,Make money on short term skepticism - Skechers de,jordan retro 9.

The most important question whether this is a short term problem or fundamentally much deep rooted problem. Before we answer this question,Air Jordan 9 Retro, let look at the DNA of this company.

Skechers was started in 1992 by Robert Greenberg. Gear, 1983 CEO; Skechers USA,preorder jordans, 1992 CEO),Military Blue 4s.

Obviously plenty of experience in Hair Products and Shoes. Both of them have a touch of fashion and fickle minded customers,For a slumping leag. Obviously they lost money in one quarter and the rest is history and it filed for BK in 1998. In a way this is good as he obviously learned his lesson as Walter Schloss said in Rule no.16 - Careful of leverage as it can go against you The good part is that he has plenty of experience in Shoe business and he has learned his lesson related to leverage. No wonder, SKX has $249 MM in cash without any debt.

If you look at Shoe industry, it is very sensitive to fickle mindedness of the customers. As a value investor why would you bet on this kind of business unless it sells very cheap. Obviously the recent hot product Ups could be real disaster but if you ignore this product, it was still selling close to $1.5B in revenues in the last two years. I think the core earnings are in line and even if you assume they do not make a penny on shape up they have strong operating leverage going forward.

It recently started going into two most populous countries in the world (China and India) and also in Brazil,air jordan. International whole sale business is up by 26% for Q3 and 36% for the first 9 months. Most of the subsidiaries had double digit growths for the first 9 months. They currently have 43 stores in Asian Region and point of sales to 375. Let look at last quarter numbers. Sales were $554MM,jordan 13 retro. Domestic whole sale is 56%, International whole sale is 22% and Retail is 20%,Black Cement 4s. The domestic retail grew by 14% and international retail grew by 52% Even if you assume that 25% ($500MM) from toning sale is zero value add, still the stock looks cheap. You also get a free option for BRIC/toning play/retail improvement in 2011/12. They just opened 4 Skechers stores in Mexico.